> The Wassenaar Arrangement bans the export of many high end equipments necessary for chip making to China. While all the other countries/regions can specialize in one part of the semiconductor industry, China has to do all of them by itself, since it has no external help.
Forcing your enemy to invest heavily in such key sectors is pretty stupid. Eventually, one way or another, Chinese will master the state-of-the-art. A few good examples here - LCD industry, weapons.
It also worth pointing out that the existence of the Wassenaar Arrangement relies solely on the fact that the US is the biggest economic and military power in the world. Not sure how long the US can continue to maintain it.
Forcing your enemy to invest heavily in such key sectors is pretty stupid. Eventually, one way or another, Chinese will master the state-of-the-art. A few good examples here - LCD industry, weapons.
It also worth pointing out that the existence of the Wassenaar Arrangement relies solely on the fact that the US is the biggest economic and military power in the world. Not sure how long the US can continue to maintain it.